Are you thinking of getting started with forex trading? Like any wise trader, you have probably traversed the byways of the internet searching for the best FX brokers. And that’s why you’re looking for a genuine ProfitiX review.
Have you checked out the professional and savvy looking ProfitiX website? Are you thinking of engaging them? Profitix Ltd, as their website claims, is a legal entity operating under the laws of St. Vincent and the Grenadines. Your investment is, therefore, safe with ProfitiX, right?
Well, an old African proverb states that both regret and grandchildren have one thing in common, they visit us much later in life. If you, however, deposit your money with ProfitiX, you will not have to wait long before disappointment and frustration creeps in.
Why? ProfitiX is a scam broker set to fleece you financially should you make the mistake of investing with it.
If you have already fallen prey to its fraudulent schemes, we have trusted and experienced experts that can help you to recover your funds. Schedule a free consultation with us right away, and we will walk with you until justice is done. Below are the reasons why you should be very wary of ProfitiX.
Profitix review: The truth
ProfitiX claims to be a legit forex broker. It is run by ProfitiX Ltd, an entity that has a St. Vincent and the Grenadines (SVG) registration. Its registration number is 25308 BC 2019, while its registered address is Carenage Bay Canouan Island, VC0450 Kingstown, Saint Vincent & Grenadines.
So what is the problem with this FX broker? The fact that ProfitiX Ltd has a legal SVG registration does not at all imply that it is a regulated broker. This is the reason why you will not find an explicit mention of regulation on the broker’s site. All it states is it operates under the laws of SVG.
Remember what we said in the Investous review? In this industry, any regulatory bodies other than SEC, FCA, CySEC or ASIC means that there is not any regulation.
The SVG financial services authority (FSA), established in November 2012 oversees non-bank business operations in the financial sector. The SVG FSA also has jurisdiction over the SVG international financial service sector.
Many questionable FX brokers like ProfitiX seek this south Caribbean nation’s registration for obvious benefits.
Does the SVG FCA provide any protections for investors?
The nation comprised of islands is a fantastic tax haven for the lucrative forex trading business. Over three trillion dollars are transacted here in foreign exchange daily. Businesses that have an SVG forex license enjoy the nation’s robust privacy laws under the Preservation of Confidential Relationships Act of 1996.
Some other benefits of a Kingstown business registration include;
- Tax exemption status for 25 years after registration, bringing in substantial profits than those enjoyed by other firms registered in other geo-locations
- The SVG registration status has a return filing exemption, meaning that the firm does not need any tax experts on its payroll
- Firms registered in St. Vincent and the Grenadines do not have to disclose the names of their directors, shareholders, or officers on a public registry
- An SVG registration allows you to conduct your business’s operations and administrative duties from any part of the world
- Low government fee payments compared to any other offshore licenses
If all this seems too good, be true, it is for businesses. To register with the St. Vincent and the Grenadines Commerce and Intellectual Property Office (CIPO), all a business needs is EC$250! The SVG forex registration, however, leaves the ProfitiX’s investor wide open to a wide array of FX trading dangers.
While forex trading or brokerage in the island nation is the most vibrant of its financial investments sector, the SVG does not have regulatory solutions for CFD, forex, and binary options. Consequently, the SVG FSA does not license or regulate forex trading activity.
A warning from the SVG FSA
There is an increased proliferation of online FX and cryptocurrency trading scams. The SVG FSA has, in the past, given warnings in the hope that investors will be careful and avoid scam artists hiding under their jurisdiction’s licenses.
In a 2018 alert, the regulatory body and the SVG Intelligence Unit (FIU) shared a sad truth. That a variety of international financial services brokerage firms were fraudulently claiming SVG FCA regulation.
This body, however, does not regulate FX or crypto trading at all and therefore does not issue trading licenses. It urged investors to exercise caution when dealing with any brokerage firm that claims an SVG FSA registration.
Most traders on ProfitiX have fallen prey to their firm’s fraudulent activities by merely assuming that a mention of an SVG registration number implies regulation by the SVG FCA. Unfortunately, as you have just read, this non-bank sector overseer does not supervise FX brokerage activities.
Without any regulatory oversight in place, you do not have any recourse via the SVG FSA should your trading activities incur adverse outcomes. So below is our caveat emptor, dear trader. Should you work with an unregulated broker, you might face challenges such as:
- Lack of transparency in operations, ranging from manipulated trades to stolen funds. Unregulated forex brokers do not have to submit financial reports for scrutiny.
- ProfitiX claims that it segregates its bank accounts, meaning that it does not mix its funds with that of the investor. This implies that ProfitiX cannot use investor funds for its own needs. However, since the firm is not regulated, it can easily change its mind and flee with the funds, meaning that it will not compensate your funds if it goes bankrupt.
- Should there be disputes, and there are many of these if you look up ProfitiX’s reviews, you cannot contact fly-by-night brokers like ProfitiX.
- Unregulated FX brokers will engage in malpractices such as the opening of trading positions without the consent of their clients. They could also tamper with the trading platform or manipulate prices. ProfitiX has been negatively reviewed as a firm that withholds its clients’ funds and essential information such as costs of trading. It also has very uncompetitive spread pricing.
ProfitiX review verdict: It’s a scam that you should totally avoid
The ProfitiX website is a sight to behold, and yes it has a few positive reviews online. The lack of regulatory oversight is, however, a big red flag. This is the reason you will find a lot of negative ProfitiX reviews that point to grievous trading malpractices.
If you have lost your money when trading FX with this firm and would like to recover it, book a free consultation session with Wealth Recovery Expert (WRE). Our years of experience in wealth recovery will help you to get back on the road to recovery.